Hi Trying-
I was definitely in the camp of a break out above .004 for a close. We had all the makings for that run here. It looked like a classic drop on light volume, where the MM's were shoring up their final inventories to move her up, but then one thing led to another and the chart broke down. I do not believe OWVI will break on Tues/Wed as I originally predicted. The MACD turned negative on Wed, along with several other indicators and from there, it was pretty much over.
As I mentioned before, SP did state that he would address the moratorium. I know he has a lofty goal of opening 8 1 world cash locations, as mentioned by his interview with chart poppers. One has to ask how he will get those funds. My guess is he will indeed have to dilute. The questions becomes by how much??? If it's by another 2 billion shares then OWVI is cooked. If it's by 500mm shares then the shares will probably drop a little or possibly stagnate. If he states that he will have to dilute but not immediately, then I would anticipate that we will probably go up. Obviously, the best course of action would be to extend the moratorium but with 7 more new locations due to come online by the end off 2010, I'm guessing that an extension is highly unlikely.
These places can't cost more than $30k to open (I'm being VERY generous with my numbers). $30k x 7 locations= $210k... Let's say that the rent is $6k/mo in all locations (Highly doubtful, especially in a part of the world where money is not worth as much as the dollar, but for the sake of comparison). $6k x 8 locations = $48k/mo. $48k x 12mos= $576k... There would still be in excess of $200k left over plus the revenue stream to pay employees.
The bottom line for me is if Steve is going to try to raise anymore than $1mm then he better be acquiring another company. It's time to start showing us that OWVI is indeed a good investment and he needs to let it pay off for us!!!
I think if Steve does level with us, whether good or bad, the transparency will provide us with a comfort of knowing that Prior does indeed have our best interest at hand and is interested in creating shareholder wealth. The faster he can address this issue, the sooner we will rebound here at OWVI!!!
JMHO...
Retro
